Inside Asian Gaming

INSIDE ASIAN GAMING | February 2011 44 Briefs Regional Briefs Wynn Macau’s blazing Q4 profit WynnMacauLtdreported its Q4 2010 net profit surged to US$208.8 million, compared to US$77.6 million in the year-ago quarter. Operating revenue rose 79% year-on-year to US$912.2 million. According to The Wall Street Journal Online , Kenneth Fong of J.P. Morgan wrote in a report that he believes the robust performance in mass-market gambling, often overlooked by investors, as well as non-gaming revenue played an important role in Wynn Macau’s strong result. “This has demonstrated the well-rounded capability of theWynn property across different segments,” he said. Although Nomura analyst Charlene Liu was bullish on the short- term outlook for Wynn Macau’s share price, especially following recent sell-offs, she cautioned: “The share performance in the medium term, however, could be bogged down by the market sentiment and concern [about] the impact of credit tightening [in China] on VIP gambling.” Speaking during Wynn Macau parent company Wynn Resorts Ltd’s earnings call, Chairman SteveWynn said the company’s planned resort on Macau’s Cotai Strip would cost around US$2.5 billion and open by the end of 2014 or early 2015. When he originally revealed the plan for his Cotai property in April last year, he said it could open as early as the end of 2013. Parent company Wynn Resorts Ltd reported a profit of US$114.2 million in Q4 2010, reversing from a loss of US$5.2 million in the year- ago quarter. Net revenue rose 53% to US$1.24 billion. Thunderbird not quite go It seems reports late last year of the imminent launch of Thunderbird resort in Daman were a little premature. Inside Asian Gaming understands the resort operators are still awaiting final licensing approval from the Indian authorities. Anyone who has ever—in their student backpacking days— attempted to use public transport in India will realise that timetables in that country can be very flexible indeed. We look forward to the official launch of this international-quality gaming resort on the sub-continent. A successful opening of the property, which includes a 176-room hotel and 82,00 square feet casino with up to 400 gaming machines and 25 table games, will undoubtedly attract the attention of big foreign investors including Las Vegas Sands Corp. LVS has already said it would be interested in entering the Indian market. As Indian law currently stands, however, gaming licences are only issued to Indian nationals or Indian companies. Any foreign investors will therefore need a local partner to see a project through. In the short tomedium-term, neighbouring Sri Lanka could be an attractive option for amid-sized, mid-price (say, half a billion US dollars) gaming resort of the sort already created byMalaysia’s Genting inManila. Late last year, the Sri Lankan government legalised casino gaming and is keen to attract new investment in tourism infrastructure to rebuild the country’s tourism industry following the 20-year civil war and the tsunami that devastated large areas of the coast in 2004. Sri Lanka is certainly attracting investor interest in themainstream hotel sector. As IAG reported last year, Hong Kong-based Shangri-La Hotels says it would like to build a new hotel property there. The company’s chairman, Kuok Khoon-Ean, flew to Sri Lanka in August 2010 for talks with senior government officials. Mr Kuok is the son of Malaysian entrepreneur Robert Kuok, whose name was recently linked briefly (and erroneously) with a buy out of the Philippines’ gaming regulator and operator, Pagcor. Sri Lanka’s government has stated it aims to generate US$2 billion annually in tourism receipts and 2.5 million tourists by 2016. In 2009, the country earned US$350 million from tourism. Thomas Arasi resigns from MBS Marina Bay Sands president and chief executive officer Thomas Arasi has resigned effective 1st February after 18 months with the company. There had been speculation over the past month about a shake up in senior management of the Singapore integrated resort. Inanemail to staffon28th January, 50-year old Mr Arasi said: “I have decided to pause, take a breather and spend more time with my daughter and other family.” Singapore’s Straits Times quoted an unnamed gaming analyst who speculated one reason for Mr Arasi’s resignation could be the “pressure” he faced running the Singapore property owned by Las Vegas Sands Corps, headed by billionaire Sheldon Adelson. One insider told the newspaper: “Mr Adelson is known in the industry to be a strong character with very strong views. A lot of the business is decided by him in the US.” Union Gaming Group opens Macau office Union Gaming Research Macau Limited, a wholly-owned subsidiary of Las Vegas-based Union Gaming Group, announced the official opening of its Macau office on 9th February. “This is a huge milestone for our company,” noted Grant Govertsen, one of the firm’s founders and Head of Asia. “There is no Still waiting—India’s aspiring new casino destination, Daman, like the country’s existing gaming centre, Goa, was a former Portuguese colony Taking a breather—Thomas Arasi